Volume, netflix, the best day in a decade. The countdown to closinging starts right now. Talking to heavy hitters including two prominent leaders. Beginning with the ceo of coke cocacola, he has got a lot of interesting things to say about branding campaigns, water, a big priority for him, and the prognosis at merck. One on one with the chief executive, but, first, to these markets, stock giving up begins. Selling picked up, really, in the last couple hours, dow up 44 points right now, but we still, at this point, still, are up for the 10th day in the past 11 sessions on the dow. Nasdaq, a different story, nasdaq, certainly an issue, apple, a big piece of that, and s p breaking 1500 for the First Time Since december of 2007, but s p not able to really hold on and keep above that 1500 mark. Well talk about that. Apple down 10 , the biggest loser on the nasdaq. Revenue falls more than 20 missing estimates. Margins a concern. Iphone5 not quite what it what was crackedded up to be. What a story. You got netflix. Check it out. The stock up 40 now. Beating top and bottom line the First Quarter, subscribers topping expectations, and the shorts running for the hills. Cant fight the tape or this stock today anyway. Netflix tearing it up, fading fast, a hit in the past two hours of the session, but the dow, still, again, were still in the plus column, and just about 400 points away from the october 2007 alltime highs. A lot of big numbers to watch. Right to the floor show. Traders standing by at the new york stock exchange, and cme, and i want to go to the new york stock exchange, and i know theres a focus here on the dow, but the s p in that 1500 mark, not able to stay technically above that line. What do you say . Dont get too greedy here. There was a nice swing in the market so far, and theres been many factors to it. Earnings season helped, Economic Data is helping. Weve had time. We got through the end of the year. Weaver moving on now. Yes, we talk about the date in february that will shift and evolve the markets, but everythings calmed down. Not a lot of head lines from europe spooking us as traders, investors, and the market. Right now, everythings smooth sailing, good and bad. Good that the market keeps rising. Bad, what is the next thing thats really going to affect the markets . You saw the apple earnings. Only really affecting the nasdaq. Everything elfs is Strong Enough to hold in itself. That shows how resilient the market is in the short period of time. Try not to get too far ahead of ourselves because, clear ly, theres other things coming up on the calendar that can move our market. John, sorry, not to be a deb by downer here, theres a word of caution. One leader says the wrong word, and, boom, 200 points. We saw the song play out before. Thats fine, but we lose 200 points, but we gained over a thousand points. We might take a step backwards, but we took many steps forward. That would be healthy, a little bit of shifting, rather than a one line straight up, give us a step. Okay, daniel over at the cme, and i dont know if youre as bullish, but, certainly, again, going back to the 1500 level, commodities moving. Whats on your radar . As a matter of fact, i agree with what john said. In addition to that, china is seemingly getting better. The news from europe has been better, and i think yuan is a past issue. Overall, not surprised to see a pull back in the market, but its not a big deal. Theres a lot of run here and profit taking, but a lot of things going for us, the economy, employment, housing in particular, and, actually, dont forget the fact theres a little taunt between the congress and president right now as far as the debt ceiling goes. Whats that do to economic growth. I mean, many economists say, you know, the debt ceiling debate, no matter what the fiscal cliff deal, take your pick, is going to shave half a percent of gdp in the First Quarter of 2013. You know what, this is going to sound terrible, i dont put faith in what economists said. Over the past two years, going into two double dip recessions. Never came about. They dont have a handle on whats going on. Investor and Consumer Confidence is better than anticipated. Well do well. Washington, we need tome to keep it going. A lot happening now in the oil market, especially with wti, michael, and in particular, the seaway, unclogging, if you will, of crude supplies another inventory build on our hands do you think . You know, tell you what, cheryl, i was with traders over the week, and we had customers on a ski trip in colorado, sat down, and talk about things, and, you know, the market, and the other two talking about this, theres confidence going forward, the markets going higher, Commodity Prices higher, following the leader type of thing. Look at the supply and demand situation in crude, its keeping our market from blasting up over 100 a barrel. We had a dollar50 range today, settled at 96. Thats a good price, but it drifts higher. We get above 97, might get stops, but yesterdays high, a went kind of came off. As long as the stocks and everything is positive, you know, the supply situation, you know, theres a lot of oil out there. Seems like the market wants to trade higher. I would be a cautious long. Cheryl see what happens with the pipeline. Gentlemen, thanks for all r you on the floor show. Appreciate it. Thank you. Cheryl president obama announcing nominations to head the Securities Commission and the Consumer FinancialProtection Bureau just a short time ago. Peter barnes monitoring that occupant of washington for us. Peter . Thats right. A new and old name. The president selecting former u. S. Attorney Mary Jo White to be the head of the securities and exchange commissioner, the First Federal probation report to hold the position of chairman of the fcc. She has a reputation of having very stuff. Formally was the u. S. Attorney for the Southern District of manhattan which includes wall street, but she didnt do a lot of Financial Crime prosecution investigations there. She was known more for her work fighting the mob and fighting terrorism. For example, her team is the one that timely put john goddy behind bars, took the teflon and prosecutorred the 1993 bombers, and shes now a white collar defense attorney with clients of former bank of America Ken Louis for example, and the president talk about her reputation for being tough. Take a listen. In the early 1990s, she brought down john gotti, head of the gambino Crime Syndicate and brought down the terrorists responsible for bombing the World Trade Center and the american embassies in africa. Id say thats a good run. You dont want to mess with mary jo. The other nomination today was a renomination, Richard Cordray to run the consumer Protection Bureau, the consumer watchdog that came out of the doddfrank financial reform legislation. As you recall, the president tried to get cordray confirmed by the senate in 20 11, but the nomination was blocked by republicans who opposed the structure of the cfpb. The president reappointedded him last january and trying to now make that a permanent assignment for him. Well see if he gets it through this time. Republicans appear to have the same issue with the structure. Well see how it plays out. Cheryl . Cheryl plan to report on that. Peter, thank you. You bet. Cheryl closing bell will ring, 52 minutes to go. Southwest airlines, Quarterly Earnings topping analysts estimates. Bookings not too shabby with a 52week high. The Business Traveler coming back . A conversation with gary kelly is next. Plus, liz claman on the scene in switzerland, liz . Its in full swing, and we are too on fox business. Coming up on this hour of countdown to the closing bell heavy hitters from cocacola ceo to the ceo of merck, and the ceo of cisco giving his 2013 outlook. Thats all coming up here on fox business. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. One bad apple is with a bunch of suppliers. On the floor with what you call the apple trickle down effect, and we knew we would see this today, nicole. Thats right. Theres cause and effect. Start off with apple, the company. Quarterly reports, and record sales for iphone and ipads, they really were disappointed. All the brokers are cutting their targets. You see the stock is down nearly 12 , and the question is whether or not apple, itself, is out of favor, lost its cool, ect. Stocks at 453 from 700 in september. That brings you to the suppliers; right . What goes into making the iphone, the ipad, the ipods . Heres names that supply app 8 for those great things, and heres a look. Logic, qualcom, broadcom, all to the downside, logic down 10 itself so having an extremely tough day. Obviously, with the idea that theres not going to be as many apple as much demand for apple products affecting the suppliers in particular. Back to you. All right, nicole, thank you very much. Talk to you soon as we are now 46 minutes away from the close. Well, somewhere in your portfolio or 401 k , you own a farm of stocks. One of the largest says the number one thing option list no matter how Affordable Health care is, big spending on research and development, liz claman with the ceo of the company at the World Economic forum in davos, switzerland. If i were to tell you that you could get the glory of creating a life saving drug, but it would take you a minimum of 15 years and a billion dollars, would you still do it . The people at merck do it every single day. Im joined now by the chairman, president , and ceo, ken fri frazier. You like that intro. I did, it describes what were all about. Whether the Health Care Act crimps innovation and the generic picture snapping what you worked hard to make. Do you have and antidepressant dote to antedote to let viewers know what it takes to develop a drug . Absolutely. Theres a number of them. What i think about to share with the viewers is a drug off patent is singular. They worked on that molecule for more than 20 years before it reached the market. It was an incredibly important innovation, and among other things, it was a pill useful for children who need a mild, but effective drug. That was is a block buster drug for you, 5 billion in sales; correct . Right, but its off pa tent now in the United States. What do you do to replace that, fill that void in the pipeline sh well, the nature of our business is that you either innovate or you become extinct, and so for us, its really about the new drugs coming along to take its place. For example, we have a franchise in diabetes now. The leading drug, and its a fabulous drug, controls blood sugar, but, again, its differentiated from the prior generic drug because it does not cause weight gain, important to those on the medicine for a long time. One the diseases that affects our nation and costs so much the the cost of everything, people wonder about the drug cost structure. How do bring it down just a bit. Does the Affordable Health care act do that in a way that you can also live with it . Well, we had to give additional reacts to make the Affordable Care act work, and thats a tradeoff thats worth it. Now more americans have access to really good Health Coverage so well take that tradeoff any day. You are part of the a panel here called smart regulation, and, in fact, its one of the panels, there are not many, that you really understand the actual title. Not so arcane and detail, but what is smart regulation . Regulation at avoiding risk, but not so much that it impedes innovation. In our country, we had issues with the compounding of drugs and people got terribly sick. We dont want a world in which patients guess whether the medicines are safe. We need a strong fda. At the same time, we want to avoid excess legislation driving up cost and things of that nature. What country does it best the fda is the gold standard. We, americans, complain its not perfect, but we have the overall best food and drug regulators in the world. Who is second . I would say japan is a close second. Okay. In fact, frankly, we get drugs approved faster in japan than in the United States. You talked about singulair, is there a drug thats the next block buster to you or on the way . Theres three, quickly. We have a drug now in Late Stage Development for alzheimers, and now know that cost our society 200 billion. The al him Alzheimers Society says by 2050, its a trillion dollars. Theres a drug that tests the dominant hypothesis to interrupt the disease process and we have high hopes for that. Uhhuh. Boy, you dont sound like a Death Penalty lawyer. You were a Death Penalty lawyer before you got here. Thats right. What was that like . I see similarities. People who do that work are committed to the fellow human beings, its mission driven, and merck is mission driven. How did you get from that to merck . I worked for a firm that represented merck at the time, and i was hired, and thats how i got to merck. You know, i look at the fact you are a lawyer by trade. What surprises you most about the pharmaceutical industry . Well, i would say what surprises me most about the pharmaceutical industry is just the level of dedication of the people. You talked about the long lead times that you have in development, and we have researchers, as you know, who started projects when they had infants, and those projects come to fruition when children go to college. Extreme dedication, and, yet, people still feel the pharmaceutical industry can bring down the price of pills. In a recession, studies show people break in pills to make them last. You know about that. Thats sad in a way. Anything we can do to change that . Well, i think its our obligation to price new medicines in accordance with the value they create. I recognize we have to do things to ensure people who cant afford them get them. We have things like patient assistance programs, but we have to recognize the impact of innovation on society. It is a huge thing when you have cancer parties who no longer have to take chemotheir, but they can take a pill. Chairman and ceo and president of merck, and, yeah, 15 years, ready to work 15 years to make what your dream is come to fruition . Watching closely. Thank you. Thank you for having me. Back to you in new york. Cheryl thank you. Closing bell ringing in exactly 40 minutes from now. It is ciscos system on the Global Economy. The chief executive weighing in on the u. S. , europe, and asia from the Economic Forum on fox business weighs on. Tdd 18003452550 when im trading, im totally focused. Tdd 18003452550 tdd 18003452550 and the streetsmart edge trading platformrom charles schwab. Tdd 180034525 gives me tools that help mfind opportunities more easily. Tdd 103452550 i can even access it from the cloud and trade on any computer. Tdd 18003452550 and with schwab mobile, tdd 18003452550 i can focus on trading anyplace, anytime. Tdd 18003452550 until i choose to focus on something else. Tdd 18003452550 all this with no trade minimums. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 open an account with a 50,000 deposit, tdd 18003452550 and get 6 months commissionfree trades. Tdd 18003452550 call 18667513261. Cheryl liz claman talking to the biggest names in business in davos, and this morning, sat down with the chairman, John Chambers and asked how the Global Economy is fairing and whats hes hearing from fellow business leer take a listen. Im a little bit more optimistic than my counterparts. When you talk to the peers here at davos, they say the most optimistic davos in five years. No back flips, but its improving. Europe is beginning to bottom out, watch for one or two more quarters before we say that. Tough numbers overall, but theres improvement. The u. S. Is stronger than people think, even though most people feel that the u. S. Economy grows 2 this next year. I would be more positive than that looking out over the year, i think a lot of people think that will not happen. Cheryl steve cohen in davos at the World Economic forum, but in stand jfn ford, connecticut scrambling for row depletions. Theres an fcc investigation into the company, and what are they saying. What do you think knows . The man next to me now, charlie. You know, its funny that, you know, when people heard the story, doing it, they think im burying the lead. The big story here is that steve cohen is in davos. Cheryl raising money . Shaking hands . Good point. As we know, as we were first to report, they are expecting massive redemptions amid the investigations as well as the criminal probe into the Fund Managers where cohen was involved, though, its unclear whether he knew inside information was passed around. Thats whats going on. Its clear that the government wants to make a case criminal and civil against cohen, and fcc capital. Heres what they are saying, particularly about the civil case. The civil case resulted in a wells notice saying the staff intends to charge the target. The target here is sac, and if they settle, its going to be a big fine, and they are telling investors, and the questions come up rapidly and a lot as that redemption date where people can pull money at approaches. I think its february 15th. Saying, listen, we are cooperating. We have responded to their wells notice. They are saying that they are not in settlement negotiations, not yet. They have responded. Cheryl that would be premature, wouldnt it, charlie . No, no. Cheryl no . Not maybe, but not quite. What investors say is they get the indication from the sec is that sec is prepared to settle this, essentially to pay a big fine and move on, at least with this portion of the case, and at least thats bantied about in the meetings that theres a settlement, settlements likely to be a fine. Sec toll investors, thattings you know, if they do fine and that and whatever costs associated with this, sometimes the fcc if you have insider trading, they pull back the insider gains. Cheryl claw backs. They will cover it. The sec capital will indemnify investors. Theres a lot of discussions going on. I dont know how much will be redeemed. Journal said a billion. My report, fairly massive. I dont know how you say billion, just add up, i guess, some of the firms that sent money to them and have a billion like c irings citi group, and i guess it could be 2 billion. Cheryl because well, the fcc wouldnt say it. Cheryl cohen, successful years, money made, so, of course, hes done something wrong. I know him pretty well. Hes obviously not a big fan of mine because i keep reporting this stuff. I happen to like him, and i, you know, i appreciate the fact hes brilliant in a lot of ways, but heres where the regulators, the prosecutors at the u. S. Attorneys office of the Southern District, running the probe on the criminal side, and with the fcc is doing on the civil side. Theyll say, listen, it is mathematically impossible to basically have the returns that he has, which is pretty steady returns that beat the market. You beat the market almost every year. You know, except for 2008 when you had the financial collapse. Its impossible to do that unless youre cheating. Thats what they would say, and now, that said, they have not charged him. They have not charged the firm formally. Wells noted the intent to charge. The full commission has to do something, and they charged hedge Fund Managers that used to work there, but, you know, like i said, its not, you know, at some point, put up or shut up, and, you know, they have not put up yet, and apparently, they are not shutting up either. Cheryl reportedded on it from the beginning. Great stuff, of course, charlie. Thank you very much. Closing bell ringing in 2030 in 30 minutes from now. Cocacola, Successful Company since 1885. Just yesterday, hear the ceos the ceos perspective. Is he from there . Cheryl yeah. Theres a few wrinkles right there. [laughter] were going to have that interview coming up. Liz clamans got the oneonone with the cocacola chairman ceo, the number one thing he thinks Business Needs to do to get things bubbling. You dont want to miss that one, right . Talking about coke. [laughter] cheryl oh, no. Were going to take a break now, because charlies still talking. [laughter] were going to head back to the World Economic forum in davos, switzerland, before we get in trouble. Be right back. [ male announcer ] how could a luminous protein in jellyfish, impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, Global Economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Cheryl welcome back, everybody. We are about 30 minutes away from the next big tech earnings report, microsoft. The companys First Quarterly report since the october launch of windows 8. Lets go to shibani joshi. First it was apple, and now weve got microsoft. And tech goes on, cheryl. Yes, big mr. Softie coming out after the close today. Here are the numbers that analysts are expecting this company to meet, 75 Cents Per Share on earnings per share on revenues of 21. 53 billion n. The last quarter the company made huge bets on software releasing the windows 8 operating system in october, also bets on the software and on the hardware as well with that surface tablet. The preliminary indications so far that weve gotten in that windows 8 sales have been sort, so were going to want to listen for more details in terms of overall licenses and the numbers of copies that have been sold. That being said, wall street thinks that were going to see stronger sales of windows 8 in the coming quarters as more pcs and devices come out that will showcase the windows 8. So a little bit of an asterisk there. We do think that were going to see strength in Consumer Products including mobile phones and the xbox and the Enterprise Division should remain strong, so a little bit of this and that to counterbalance the other. But, of course, the operating system is the companys bread and butter, so that is what will matter most. Cheryl steve balmer is on the hot seat, and we will see what happens, of course, after 4 p. M. Eastern time. Thank you. Were going to have coverage on microsoft, and you cant miss starbucks. Both reports coming out in the 4 p. M. Eastern time hour. Dont miss after the bell, youre going to have david asman and sandra smith covering those numbers for you. Business survival, think about it. How Many Companies either failed or didnt even get off the ground since the financial crisis began . Ive liz claman is in davos, switzerland with a man whose company has survived. Liz liz my next guests companys Facebook Page has 57 million likes. Who do you think that is . Okay, its cocacola u and we are here with the president and ceo, muhtar kent. Do you facebook . I dont, but im really proud that we do have now weve gone past the 57 million mark on facebook, and, um, i think this is really whats fascinating about the world today, how its changing so fast and the way that no longer are you only going to be communicating to your consumers, consumers communicate with each other and talk about your brand. And that is the key in how you actually shape motivation of consumers and how you shape your brand in a positive manner or, and how you succeed in this world today. Liz youve been coming since the 80s to davos to the World Economic forum, but do you learn something each year about cocacola itself . Well, first you learn a lot about the world and how the world is changing and how business cannot alone solve some of the big challenges of the world, and governments cant. Theyre learning, and Civil Society cant, its the Golden Triangle that needs to be formed closer, more lasting collaboration between governments, Civil Society, ngos, universities, business to come together to solve some of the big societal problems whether its unemployment or whether its active, Healthy Lifestyles or whether its health care or whether its create how do you solve or solving the algebra for growth. Liz water. You are partnering with dean cayman on this slingshot Water Technology that turns, frankly, filthy water into potable drinking water. Why are you spending so much time and effort in that . Well, thats only a small piece of what were doing with water. Water is a very big issue in the world and will continue to become bigger because nobody treats water with dignity in the world. Everybody thinks its free, its available. Agriculture has a lot to improve in terms of practices in how they conserve water. We all have to conserve water better way, treat it with more dignity and, therefore, cocacola has been the First Business in a way that has declared a goal of water neutrality by 2020. Think of the amount of water that cocacola uses, and then we have said by 2020 we are going to globally become water neutral. That means give back to the world every liter of water that we use liz that you take. If your beverages and to make our beverages. Liz boy, we have a president who was reelected, weve got all kinds of tax changes, the payroll tax cut has been eliminated. We got through one part of the fiscal cliff, now were looking at the debt ceiling. Which one of those, to you as a business leader, matters the most, affects business the most . I think, um, what matters the most is providing clarity. Clarity to business, clarity to the country at large. And thats what people want. Every time theres a survey, you see that they want clarity. And thats why i think it is so important to have a solution. Liz well, now you know you have clarity on the fact that people have the payroll tax back into their paychecks. Sure. Liz are you seeing any effect on that where people have less money in their pockets, and maybe theyre not buying cocacola as much . Well, i think generally speaking we still see great opportunities in the United States for our business in the coming decade and continuing on from there. We havent seen an impact yet. Its too early to tell. Liz okay. But i would say this, um, i would say if we can have a solution which i believe we will for fiscal reform, if we can have a solution in the United States for tax reform to get a 21st century tax policy in place that we can all be proud of, if we can get Immigration Reform in place and if we can also start having a solution for our infrastructure, infrastructure reform, i believe the United States, the future is so bright for the United States. Liz do you feel that president obama heading into the next four years has become more businessfriendly, neutral, less . I would say i have, um, great hopes that the next four years are going to be better and good four years for the United States. Liz there has been a decline in consumptionover sugary sodas over the past decade, at least in the United States, and then you have certain riders, i mean certain leaders, i mean, president obama talked about it either instituting a federal tax on sodas or state governors who might be thinking let me just shake easy money from the Beverage Industry tree. By instituting some type of tax. What would you say to a governor whos thinking about doing Something Like that . I would say we cannot tax our way and solve this problem, any of these problems. We cant tax and provide solutions. It has never provided solutions. We can only grow our way out of the current situation, and growth means coming together as business, as government to try and create the necessary platform so that business can continue to invest. We are, we have invested 10 billion in the United States in the last three years. We still see great opportunities in the United States. When you look at the top 15 brands in the business of nonalcoholic beverages in the United States, theres actually been growth in those top 15 brands in the United States. So brands are growing. Maybe the industry is not growing as a whole, but the brands, key successful brands are growing, and by the way, in dollar value the industrys grown 3 in the last three years. Liz continuing waving the cocacola flag, thank you very much. Muhtar kent, the president and ceo of coke. The old slogan was have a coke and a smile. Thank you. Liz back to you in new york. Cheryl she always has a great smile. All right, coming up, dont miss more from davos, liz claman is talking to the president of costa rica and stanley fischer, all starting 4 p. M. Eastern time. Closing bell going to ring in 15 minutes. All right, coming up shares of southwest soaring to new highs despite Fourth Quarter numbers. Chairman and ceo gary kelley going to be here at the break. Plus, were going to be following 737s, they like that plane, but what about the dreamliner . All coming up after the break. Cheryl all right. We have been following, of course, all day long what is happening with shares of apple. The market cap sitting at about 424 billion, that is now well below exxonmobils market cap. Why is that significant . Because at one point apple, obviously, was well above exxonmobil. So the fact that youve got the drop in apple stock today, and theres the chart on your screen, has added something to watch again. Pressure after the earnings, iphone 5 revenues, weve been watching all of it. Apple losing about 11 today. We are going to continue b to watch the stock as it trades, first day after apple reported its earnings. Well, while safety regulators are busy figuring out what to do with the dreamliner, for the rest of the Airline Industry its business as usual. Southwest reported Quarterly Results this morning. Earnings beat estimates, and revenue came in just shy. Still, investors cheered on. They brought this stock to a 52week high on the news. Joining me now on the phone from dallas, gary kelly, Southwest Airlines chairman, ceo and president to touch on earnings, air trend immigration and whats in store for the business overall. And, gary, thank you for being here. Lets talk about the profit loss, and really it was about the fuel heads. That was one of the big problems there. Thats something that southwest has always been so effective at. Do you have a strategy to turn that around, gary . Well, no, it was a really solid quarter. We, you know, we were right in line excluding the items with the yearago number, and, you know, we ended up with a very solid profit increase for the year, so its our 40th Consecutive Year of earnings, and, you know, our fuel hedge is pretty much a nonissue at this point. We have positioned out through 2016. Those positions are all in the money. Cheryl uhhuh. And, you know, at this point our fuel hedge isnt really hurting us, its not really helping us at least in 2012. But weve got nice protection in place over the next several years if prices take a sharp increase from here. Cheryl well, one of the things that did happen on the revenue side, obviously, was fares up about 8 yearoveryear. Do you think that more fare increases are going to be in the cards for you as you continue to deal not just with maintenance costs, but again, with fuel, things like that . Is that a possibility . Well, cheryl, thats really you really put your finger on it, you know . The cost and primarily the increased fuel cost is the pressure that were dealing with, and were not hitting our earnings target. And that has caused fares to go up to cover that. Now, our average fare was up about 5 , our passengers are flying a little bit longer distance which are higher fares, so thats part of that 8 change that you see yearoveryear. But were going to do everything we can to keep our costs low and keep our fares low and certainly strive to be lower than anybody else. But weve got a good year lined up here in 2013. Weve got a good year without having to depend on fare increases, and so, you know, i cant really tell you whether fares will change or not, but the good news is we have a lot of good things underway which are going to add a lot of good value and take some pressure off, quite frankly. Cheryl well, you know, gary, 57 of analysts right now have a buy on your stock, and theres actually been an increase in the Analyst Community in the ratings on your company. I do want to ask you about the issues over at boeing. Southwest has been a faithful 737 buyer of those aircraft for, well, the entire history of the airline, frankly, 41 years. But the dreamliner, are you concerned at all about whats going on in the Engineering Department at boeing, . No. Of course, boeing is one of the Great Companies of the world and have been our very good and really great partner from the very beginning at Southwest Airlines. Weve had tremendous success in working with boeing, tremendous success with the 737. So anytime you have a new airplane there are always some, you know, breakin type items that just have to be worked through, and, you know, to be honest with you i just dont know enough about what the issues are to speak intelligently about it. It is a completely different electrical system and battery system than what we have, so i just cant really add anything other than theyre a great company, and i know theyre working hard to fix it. Cheryl tbri kelly, Southwest Airlines ceo, chairman and president. Thank you very much for being here. Thank you so much, cheryl. Cheryl closing bell going to ring six minutes from now, and coming up tomorrow, its the final day at davos. Dont miss lizs interview with andrew liveris. And coming up after the break, im going to tell you the one stock today tahas taken a dip after a Senior Executive decided to split. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. [ male announcer ] where do you turn for legal matters . At legalzoom, weve created a better place to handle your legal needs. Maybe you have questions about incorporating a business youd like to start. Or questions about protecting your family with a will or living trust. 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David you know what these tissues, cheryl. Not because i have a cold. Not because it is 11 degrees and because i own apple stock. Everybody that owns apple stock is down 63 a sandra we wont ask where you bought the shares. David y c